Can even the smartest minds outsmart market mania?

Sir Isaac Newton lost a fortune in the South Sea bubble—proof that FOMO can derail even genius.

In this episode, Tim and Nick unpack what Newton’s misstep teaches us about bubbles, herd behaviour and today’s hype-driven markets. Discover why diversification, discipline and wise counsel remain your best defence against financial folly.

Important time stamps:

(00:00:37) Intro: Newton’s investment mistake and market bubbles

(00:01:33) Why bubbles happen and why they’re hard to spot

(00:03:22) What Newton’s South Sea bubble experience reveals about investor behaviour

(00:03:38) Deep dive into the South Sea bubble and Newton’s costly mistake

(00:06:49) Newton’s famous quote on human behaviour and markets

(00:08:14) Parallels between historical bubbles and today’s AI boom

(00:11:36) Why predicting winners is nearly impossible

(00:11:48) Strategies to counter FOMO and avoid poor decisions

(00:13:30) Diversification as the best defence against market uncertainty

(00:14:46) Role of financial advisers in preventing big mistakes

(00:17:33) Closing thoughts: humility, discipline and diversification

The Adviser Talk is available on all popular streaming platforms, including Spotify and Apple.

• Nick Stewart is a Financial Adviser and CEO at Stewart Group, a Hawke's Bay and Wellington-based CEFEX-certified financial planning and advisory firm. Stewart Group provides personal fiduciary services, Wealth Management, Risk Insurance and KiwiSaver solutions.
• The information provided, or any opinions expressed in this show, are of a general nature only and should not be construed or relied on as a recommendation to invest in a financial product or class of financial products. You should seek financial advice specific to your circumstances from an Authorised Financial Adviser before making any financial decisions. A disclosure statement can be obtained free of charge by calling 0800 878 961 or visit our website, www.stewartgroup.co.nz

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